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American Recovery and Reinvestment Act Program Guide
 
Rural Housing Insurance Fund Program Section 502 Direct & Guaranteed Loans
Progress Indicator
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Guidance Available Application Processes Open Application Processes Closed Award Processes Completed
 
Federal Program Information
Federal Program Description Section 502 direct loan program (both guaranteed and direct) helps low and very-low income applicants who cannot qualify for other credit, including a 502 guaranteed loan, purchase a modest dwelling located in a rural area. Very low income is defined as below 50 percent of the area median income (AMI) and low income is between 50 and 80 percent of AMI. Applicants may obtain 100% financing and must be able to afford the mortgage payments, including taxes and insurance, which are typically within 24 percent of an applicant's income through a payment subsidy to enhance repayment ability. Housing must be modest in size and design, and must not exceed the applicable area loan limit.
CFDA Number 10.410
Assistance Type Guaranteed/Insured Loans
ARRA Citation Division A, Title I, H.R. 1-3
ARRA Reporting Recipients of funds will be subject to The Office of Management and Budget memorandum M-09-21 dated June 22, 2009, which provided guidance on recipient reporting. 
Federal Agency Department of Agriculture
 
NYS Information
NYS Program Title Rural Housing Insurance Fund Program Section 502 Direct &Guaranteed Loans
NYS Agency Division of Housing and Community Renewal
Contact Gary Hallock
Email ghallock@nysdhcr.gov
Phone 518-473-3022
 
Program Funding
National Total $11.5 billion
NYS Share Project Based- Unknown
Flow of Funds

For Section 502 Direct Loans – a prospective homeowner applies directly to the USDA/RD field office which makes and holds the mortgage – funds flow from USDA Washington through the USDA field office to the individual borrower.

 

For Section 502 Unsubsidized Guaranteed Loans – a prospective homeowner applies directly to an approved commercial lender who pays USDA/RD a fee in return for which USDA/RD insures a portion of the mortgage – federal appropriations and lender fees capitalize an insurance loss reserve fund.
Deadline September 30, 2010
 
Federal Grant Notice(s)
Status Open
Title Rural Housing Insurance Fund Program Section 502 Direct & Guaranteed Loans
Eligible Entries Individuals / households
Website http://www.rurdev.usda.gov/arra/recovery-program.htm
Deadline September 30, 2010
 
Awards and Outcomes
Website http://www.recovery.gov/transparency/pages/home.aspx?State=NY